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We provide a systematic empirical assessment of the Minsky hypothesis that business fluctuations stem from irrational swings in expectations. Using predictable firm-level forecast errors, we build an aggregate index of irrational expectations and use it to provide three sets of results. First, we show that our index predicts aggregate credit cycles. Next, we show that these predictable credit cycles drive cycles in firm-level debt issuance and investment and similar cycles between financially constrained and unconstrained firms, as Minsky predicts. Finally, we show more pronounced cycles in firm-level financing and investment for firms with ex ante more optimistic expectations. (JEL G31, G32, G40, E32, E44) [ABSTRACT FROM AUTHOR]

We analyze a dynamic credit market where banks choose lending standards, modeled as costly effort to screen out bad borrowers. Tighter standards worsen the borrower pool, increasing banks' incentives to employ tight standards in the future. This dynamic complementarity in lending standards can amplify and prolong downturns, decreasing lending and increasing credit spreads. Because lending standards have negative externalities, the market can converge to a steady state with inefficiently tight lending standards. We discuss the role of optimal policy to avoid this outcome as well as the impact of balance sheet costs on lending standards. [ABSTRACT FROM AUTHOR]

This article is the first to study the relation between financial restatements and restatement firms' demand for trade credit as a source of financing. Using a sample of U.S.-listed firms for the 2000–2016 period, we find that restatement firms tend to use more trade credit in the year following the restatement disclosure year than do non-restatement firms. Moreover, we find evidence that restatement firms use trade credit to substitute for the reduced reliance on short- and long-term loans. Our further analysis reveals that restatement firms can obtain more trade credit when the firms promptly change the CEOs as a signal for firms' attempt to repair damaged organizational legitimacy. Taken together, our findings suggest that restatement firms experiencing difficulties in obtaining conventional borrowings tend to resort to trade credit as an alternative source of financing. [ABSTRACT FROM AUTHOR]

How do inaccurate priors about the distribution of interest rates affect search and outcomes in consumer credit markets? Consumer credit markets feature large amounts of within-borrower price dispersion in interest rates; if consumers are unaware of the extent of this price dispersion, they may shop less and take out loans at higher interest rates than they would otherwise. We conducted a randomized controlled trial with 112,063 loan seekers in Chile where we showed treated participants a price comparison tool that we built using administrative data from Chile’s financial regulator. The tool shows loan seekers a conditional distribution of interest rates based on similar loans obtained recently by similar borrowers, using data on the universe of consumer loans merged with borrower characteristics. We also cross-randomized whether we asked participants their priors about the distribution of interest rates. We find that consumers thought interest rates were lower than they actually were, and the price comparison tool caused them to increase their expectations about the interest rate they would obtain by 56%. Consumers also underestimated price dispersion, and our price comparison tool caused them to increase their estimates of dispersion by 69%. The price comparison tool did not cause people to search or apply at more institutions, but it did cause them to receive 13% more offers and 11% lower interest rates, and to be 28% more likely to negotiate with their lender and 4.7% more likely to take out a loan. In contrast, merely asking participants their expectations about interest rates led them to search at 4% more institutions and obtain 9% lower interest rates.

We investigate whether firms' number of credit relationships with financial institutions affects labor market outcomes. Using 5 million observations on matched credit and labor panel data from Brazil, we estimate IV regressions, employing exogenous variation in firm-lender relationships due to nationwide bank M&A activity. Firms with more relationships employ more workers and pay higher wage bills. Credit availability, cost of credit, and financial institution heterogeneity are economic channels. The firm-level results translate into positive macroeconomic effects in municipalities and states. The evidence is novel and indicates the positive effects of multiple relationships on labor market outcomes in an emerging economy. [ABSTRACT FROM AUTHOR]

After exogenous demand shocks caused by natural disasters, FinTech lenders are more responsive to increased demand for reconstruction mortgages than traditional banks and non-FinTech shadow banks. Both FinTech and traditional banks increase credit supply, but FinTech supply is more elastic without increases in risk-adjusted interest rates or delinquency rates. Comparing lending supply channels, banks respond to regulatory incentives to lend to damaged areas, whereas FinTech lenders supply more credit when traditional banks rely more on balance sheet financing and physical branch networks. Compared to traditional banks, FinTech lenders increase supply elasticity more aggressively in response to local competitive pressure. [ABSTRACT FROM AUTHOR]

This article explores young people's consumption of credit and the role of credit and debt in the distinction between youth and adulthood. The article engages with recent shifts in the nature of credit that have turned credit into an object of consumption in itself, as well as broader arguments about the financialisation of daily life, in order to understand the temporalities and moral distinctions enacted in different forms of credit and debt among youth. While it is well recognised that financialised capitalism operates and creates value from differences including gender, racialisation and class, the formation of youth subjectivities through credit and debt technologies remains unexplored in the literature despite an emerging crisis of consumer credit among young people. With this in mind, this article draws on a qualitative study of youth, credit and debt, to show that young people experience debt within contradictory temporalities and calculative logics, including the long-term 'investments' required to become an adult, and the logic of consumption attached to consumer credit which positions credit as a failure of self-responsible adulthood because it places future creditworthiness in jeopardy. In this way, the article suggests a future research agenda on the way that biographical distinctions are enacted through credit and debt, and how notions of youth and adulthood contribute to the qualification and consumption of credit. [ABSTRACT FROM AUTHOR]

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A widely held view is that small firms in developing countries are prevented from making profitable investments by lack of access to credit and insurance markets. One solution is to provide repayment flexibility in credit contracts. Repayment flexibility eases both the credit constraint, as it allows for increased spending during the start-up phase, and offers insurance, in case of fluctuations in income. In a field experiment among traditional microfinance clients and larger collateralized borrowers in Bangladesh, we randomly assign the option to delay up to 2 monthly repayments at any point during a 12-month loan cycle. The flexible contract leads to substantial improvements in the traditional microfinance clients' business outcomes, driven by borrowers in the upper tail of the distribution. In addition, we find a significant impact on socio-economic status, combined with lower default rates. We show theoretically and empirically that these effects are induced by an increase in entrepreneurial risk taking, implying that the primary mechanism is insurance provision. Repayment flexibility also attracts less risk-averse borrowers interested in business expansion. At the same time, the effects for the larger loan are much more modest. Our findings suggest that lack of insurance is an important constraint for small firms but that a simple financial product that increases repayment flexibility can be an effective tool for enabling enterprise growth. [ABSTRACT FROM AUTHOR]

This study examines the determinants of new firm creation in Africa, focusing on external and internal funding sources and their interactions. It also explores the influence of colonial history by separately analyzing former British and French colonies. The primary goal is to help fill crucial gaps in African literature on the determinants of entrepreneurship. Given Africa's widespread poverty and underdevelopment, understanding what drives entrepreneurship is essential for job creation and economic growth. The study reveals three key findings. First, at the full sample level, remittances are the only external financing source positively associated with new firm creation, while foreign aid and foreign direct investment obstacle it. Internal sources, like savings and credit, do not show significant effects. Second, the subsample analysis reveals heterogeneous results: former British colonies' funding sources align with the overall findings, while in former French colonies, only savings support entrepreneurship. Third, considering control variables, the subsample analysis indicates two distinct entrepreneurship models: opportunity-based in former British colonies and necessity-based in former French colonies. These findings are noteworthy and provide significant policy implications at both national and international levels. Crucially, the positive role of remittances in financing new business initiatives, confirms that migration serves as a mutually beneficial arrangement for both sending African countries and the host countries. [ABSTRACT FROM AUTHOR]

Debt-financed migration has been a subject of academic interest for the past two decades. This phenomenon can be divided into two main mechanisms: salary deductions and upfront payments. In salary deductions, facilitators provide migrants with upfront funds that are later deducted from their salaries by their employers. In upfront payments, migrants borrow and mortgage assets to obtain capital to cover migration-related expenses upfront or upon arrival. These expenses are then repaid through remittances. Most of the existing literature on debt-financed migration has taken an economic perspective that emphasizes the risks of debt bondage in salary deductions and vulnerability in upfront payments. Studies critically examine the role of states, brokers, and markets in impacting migrants’ well-being and labor and human rights. However, considering the increasing intensity of migration flows and the widespread use of debt as a funding mechanism, evaluating the relevance of the conventional economic framework is essential. I argue this framework can be supplemented with a richer and more empirical understanding of agency that shows how migrants can effectively use debt for empowerment and protection against debt bondage and vulnerability. To support this argument, I delineate an economic anthropology framework highlighting migrants’ agentic use of debt to their advantage. [ABSTRACT FROM AUTHOR]

The energy issue in both developed and developing countries remains vital. However, in developing countries, energy pressure is much greater. Despite this, few studies have examined credit, entrepreneurship, and energy transition in developing countries. We addressed this research gap by using the data collected from six regions in Burkina Faso. Employing the multivariate probit and the endogenous switching probit model, three scenarios are explored. We find that entrepreneurship promotes energy transition while access to credit is not useful to the energy transition. However, the joint effect of access to credit and entrepreneurship is 4 times higher for solar PV use and 3 times for biogas adoption. Access to credit promotes the energy transition when credit is devolved to the entrepreneur supporting the trinity rather than the trilemma. [ABSTRACT FROM AUTHOR]

The mortgage industry is central to ethno-racial stratification in homeownership access. Ample research demonstrates that unequal treatment of minorities has created major differences in the access and exclusion of low-cost loan products in the housing market. While numerous studies have documented the disadvantages Black and Latino homebuyers face, these studies have been limited in their assessment of credit worthiness in accessing a mortgage. This study draws on the annual dataset from the Home Mortgage Disclosure Act from 2018 and 2019 to assess ethno-racial disparities in mortgage outcomes by debt-to-income (DTI) levels. I demonstrate that DTI levels vary tremendously by ethno-racial groups. In addition, I show that loan rejections and high-cost loan originations are highest among Blacks and Latinos across DTI levels compared to White applicants. Depending on the adverse loan outcome, Asians perform similarly or slightly underperform compared to Whites. These trends are particularly true when examining high-cost loan originations as Blacks and Latinos with excellent credit worthiness perform similarly as Whites and Asians with below-average credit worthiness. Implications for ethno-racial stratification are discussed. [ABSTRACT FROM AUTHOR]

Existing literature shows that a ban on child labour may be self-enforcing under the extreme assumption that, above the subsistence level, no amount of consumption can compensate parents for the disutility of child labour. The present paper shows that a partial ban may be self-enforcing also in a more general model where education is an alternative to work, and the disutility of child labour can be compensated by higher present consumption or future income, but a total ban may not. It also shows that, in the absence of informational asymmetries, child labour can be eliminated and a first best achieved if the ban is combined with a credit-backed policy including a subsidy to parents, and a tax on skilled adults. A first best is out of reach if the use children make of their time when they are neither at school, nor working in the labour market is private information, because the policy maker then faces an incentive-compatibility constraint. The second-best policy reduces child labour, but not to zero. [ABSTRACT FROM AUTHOR]

This article offers new evidence on commercial financing in the early modern Ottoman Empire. It examines the little-known role of cash waqfs (nukud-ı mevkufe), Islamic trusts, in supporting Ottoman trade with Europe in the sixteenth century. Most of scholarship on cash waqfs considers this institution exclusively as a provider of micro-credit to consumers because the Islamic legal framework allegedly hindered capital accumulation from this institution. By focusing on the cash waqfs of Sarajevo in Ottoman-Venetian trade in the Adriatic Sea in the 1580s, I demonstrate that this institution could also operate as a source of commercial capital supporting large-scale business ventures. I argue that this was the case in Sarajevo because of the absence of other major capital providers in that city and of the specific role played by local artisanal associations (esnaf) in the foundation and administration of these endowments as well as in the conduct of international trade. These findings for Sarajevo are another demonstration of the operational diversity and flexibility of Islamic credit institutions in the pre-modern period. [ABSTRACT FROM AUTHOR]

This article introduces the distinction between money-as-money dealing capital (MMDC) and money-as-capital dealing capital (MCDC), laying the foundations for new developments in the field of Marxian political economy. First, it explains why banks, which manage the circulation of money-as-money, are able to issue instruments that perform monetary functions, and also why non-bank financial intermediaries, which manage the circulation of money-as-capital, tend to become increasingly important as the capitalist mode of production evolves. The distinction between MMDC and MCDC also allows for a more thorough understanding of the nature of Marx's category of interest-bearing capital (IBC), explaining when and why a capital's net income takes the form of profit and interest, unveiling the mechanisms that produce the (socially valid) illusion that every capital bears interest. JEL Classification: B14, B26, E11, E43, E44 [ABSTRACT FROM AUTHOR]

Objective: The study examines the efficiency and influence of bank loans on Zimbabwe's agricultural growth. The main objectives are to assess how bank lending affects agricultural output and identify the key factors affecting its effectiveness. Approach: This research uses the Vector Error Correction Model (VECM) approach to examine the long-term and short-term relationships between bank credit and agricultural output. Results: Extending credit availability may help agricultural development, as the study indicates a strong long-term positive association between bank credit and agricultural production. However, the short-term study yields inconsistent findings, with variations brought on by outside forces, including shifting policies, unstable economies, and unfavourable weather patterns. This suggests that structural problems in the banking or agriculture sectors impede quick recovery. While bank credit is critical in enhancing agricultural growth in Zimbabwe, its effectiveness is contingent upon a stable economic environment and supportive policies. Implication: Therefore, to maximise the impact of bank lending, policymakers should focus on improving financial infrastructure, mitigating external risks, and creating a conducive environment for agricultural investments. Value: This study uniquely examines the impact of bank credit on agricultural productivity in Zimbabwe using a comprehensive set of economic and non-economic variables and advanced econometric methods, providing new, context-specific insights and practical policy recommendations for enhancing agricultural growth in a challenging environment. [ABSTRACT FROM AUTHOR]

Pursuant to its power to borrow money on the credit of the United States, Congress has periodically permitted the Executive Branch to incur debt subject to a steadily-increasing statutory limit--the so-called "debt ceiling." As the national debt climbs, bitter debate over whether the statutory ceiling should be raised, with the specter of default looming, has become a recurring phenomenon. Many scholars of constitutional law think their field of study offers an escape from the debt ceiling, though their proposed solutions vary. There is, at present, no published legal scholarship that defends the constitutionality of the debt ceiling, which could lead policymakers to overestimate the debt ceiling's legal vulnerability. This Article, in contrast, contends that the legal theories for negating the debt ceiling are unconvincing. It proceeds in four parts. Part I discusses the Fourteenth Amendment's Public Debt Clause. Though that Clause likely prohibits default on the national debt, it requires no more that the President pay the costs of debt service while reducing or halting other spending once the government hits the debt ceiling. Much of the government may shut down, but prioritizing spending on debt service avoids the only thing forbidden by the Public Debt Clause--default. Part II discusses the claim that the President may breach the debt ceiling when necessary to fund appropriations. The President, however, is under a constitutional obligation to faithfully execute the laws. This requires the President to respect, rather than breach, the debt ceiling. It is, after all, one of the "laws" that the President is obligated to faithfully execute. This can be done by treating appropriations laws as contingent on compliance with the debt ceiling, consistent with ordinary rules for statutory interpretation. Part III addresses the exotic options. Issuing a trillion-dollar platinum coin or novel bonds are likely unlawful breaches of the statutory debt ceiling, but, even if not, this gambit would be of no use if Congress and the President cannot reach an agreement on the annual federal budget. At that point, appropriations lapse, and the government must shut down anyway. The exotic options come with considerable legal and financial risk; they buy, at best, a few months to negotiate a budget and ultimately solve nothing. Part IV discusses the implications of the conclusion that the Constitution offers no way around the debt ceiling. What seems like bad news actually is not. Although default is both unconstitutional and unlikely, the quite realistic threat of a government shutdown when the government approaches the debt ceiling usefully forces competing factions to negotiate or face a threat of retribution from the voters at the next election. This Article concludes with a discussion of a question of constitutional theory which lurks behind the scholarly dispute over the debt ceiling. Any constitutional theory must be able to answer perhaps the most fundamental question in constitutional law--why should policy debate be removed from the realm of ordinary politics and be resolved instead as a matter of constitutional law? The scholarly attacks on the constitutionality of the debt ceiling, however, fail to even consider this question. Debate over whether a statutory debt ceiling should be used to restrain government spending is precisely the sort of debate that belongs in the realm of ordinary politics, not constitutional law. [ABSTRACT FROM AUTHOR]

This article examines the likelihood of deception on the part of borrowers wishing to obtain credit from institutional or private lenders in Peer-to-Peer lending set-ups. In our first study, we identify five explanatory variables that account for nearly forty percent of the propensity to act deceitfully in such circumstances: a poor credit history, debt, risky behavior, and to a much lesser degree, irrational behavior and disconnection from the bundle of needs, goals, and preferences. For the second study, we remodeled the initial questionnaire to adapt it to the needs of lenders and borrowers who engage in on-line peer-to-peer lending, a growing business fueled in part by the COVID pandemic. We find that the three key psychological variables that help to assess the likelihood of deceitful behaviors and possible default on loan reimbursement—namely, risky behaviors, (ir)rationality, and (dis)connection—interact with each other to form a loop. This study presents two benefits: first, we provide evidence that it is to some degree possible to tighten control over lending practices in P2P settings. Second, we offer a new pragmatic tool to gauge potential borrowers' deceit in the context of debt building, notably by combining psychological assessments with standard hard-data measures of risk. [ABSTRACT FROM AUTHOR]

This article attempts to understand the impact of Covid-19 induced disruptions on the business activities of micro, small and medium enterprises (MSMEs) in the Southern State of Tamil Nadu, through a primary survey conducted in Chennai, Coimbatore, Sivakasi, Tiruppur and Tiruchirappalli districts of the State during February-March 2022. Survey results indicate that MSMEs’ sales and liquidity were severely affected during the pandemic, with 65 per cent of the surveyed firms reporting decline in sales and 86 per cent reporting decline in liquidity. The proportion of firms receiving some Government support during Covid-19 was the highest in the micro category. Among various schemes, the outreach of the Emergency Credit Line Guarantee Scheme (ECLGS) was found to be highest. Econometric analysis suggests that the incidence of shutdown was significantly higher among the ‘micro’ category. Further, revenue loss to a greater extent was more likely among the manufacturing MSMEs as compared to the MSMEs in the services sector, though job losses due to retrenchment was more likely in the case of MSMEs in the services sector. Exporting firms, firms with a website and firms selling online were less likely to face a sharp fall in liquidity. Though MSMEs were found to be optimistic about overall business situation and turnover going forward, these firms remained wary of increased cost of finance, raw material, and wage bill. [ABSTRACT FROM AUTHOR]

This article uses data from 111 developing countries to document the effect of social capital on financing constraints faced by private firms. The results show that firms headquartered in countries with high social capital face lower financing constraints than firms headquartered in countries with low social capital. These findings are robust to a comprehensive inclusion of country-level and firm-level controls. We argue that social capital is instrumental in creating an environment in which managers are less likely to act opportunistically, thereby increasing the trust of capital providers in firms. Consequently, capital providers are more likely to grant credit to firms, thereby reducing the financing constraints. The findings also show that the relationship between social capital and financing constraints is moderated by firm-specific and country-specific characteristics. Firms with weaker fundamentals and firms headquartered in countries with weaker institutions are more likely to benefit from improvement in social capital. JEL Codes: A13, G3 [ABSTRACT FROM AUTHOR]

Purpose – In this article, the research objective is to empirically investigate the effect of the adoption of the Brazilian instant payment system, Pix, on the local credit market structure and the diversification of the banking system in Brazilian municipalities. Design/methodology/approach – By analyzing the data, in this study, we compile and align data from supervisory and public sources, covering the period from 2019 to 2022 in Brazil. As of 2014, Brazil was comprised of 5568 municipalities distributed across five regions: North (450 municipalities), Northeast (1792), Midwest (467), Southeast (1668) and South (1191), according to the Brazilian Institute of Geography and Statistics (IBGE). Our analysis relies on the volume and quantity of Pix to the outstanding credit operations in Brazil. Findings – This article provides evidence that the widespread adoption of Pix has impacted the financial structure of municipalities. This analysis of banking concentration in the country and municipalities, based on banking relationships, helped us assess whether the adoption of Pix had any correlation with the increase in credit lines. Overall, the results from the statistical tables suggest that the adoption of Pix may be having a positive impact on the local credit market structure. Originality/value – The originality contribution of the study is to initiate an investigation into the impact of this instant payment system, Pix, on the Brazilian reality. Pix was launched in 2020, amid the COVID-19 pandemic, and had significant numbers, such as over 61% of the adult population having at least one Pix key registered in a little over a year; about 100 million people made at least one payment with Pix; and more than 1.4 billion transactions per month, with 72% between individuals, as presented by the REB 2021.

In predictive modeling, addressing class imbalance is a critical concern, particularly in applications where certain classes are disproportionately represented. This study delved into the implications of class imbalance on the interpretability of the random forest models. Class imbalance is a common challenge in machine learning, particularly in domains where certain classes are under-represented. This study investigated the impact of class imbalance on random forest model performance in churn and fraud detection scenarios. We trained and evaluated random forest models on churn datasets with class imbalances ranging from 20% to 50% and fraud datasets with imbalances from 1% to 15%. The results revealed consistent improvements in the precision, recall, F1-score, and accuracy as class imbalance decreases, indicating that models become more precise and accurate in identifying rare events with balanced datasets. Additionally, we employed interpretability techniques such as Shapley values, partial dependence plots (PDPs), and breakdown plots to elucidate the effect of class imbalance on model interpretability. Shapley values showed varying feature importance across different class distributions, with a general decrease as datasets became more balanced. PDPs illustrated a consistent upward trend in estimated values as datasets approached balance, indicating consistent relationships between input variables and predicted outcomes. Breakdown plots highlighted significant changes in individual predictions as class imbalance varied, underscoring the importance of considering class distribution in interpreting model outputs. These findings contribute to our understanding of the complex interplay between class balance, model performance, and interpretability, offering insights for developing more robust and reliable predictive models in real-world applications.

We examine how creditor rights affect the trade-off between non-debt and debt tax shields. Using four bankruptcy reforms and a panel of private and public firms from Italy, we show that laws empowering creditors reduce tax avoidance and increase debt financing, consistent with firms substituting non-debt tax shields with debt tax shields. We corroborate the validity of our findings using a panel of public firms across 33 countries. Additionally, we document that the impact of creditor protection laws is mitigated by tax system characteristics, which significantly reduce the incentives to substitute tax avoidance with debt. [ABSTRACT FROM AUTHOR]

Using a regression-discontinuity design and within lender–borrower variation, we analyze how credit default swaps (CDSs) affect bank incentives and borrower outcomes in renegotiations after covenant violations. While existing studies document an investment decline after covenant violations, we find that covenant-violating firms maintain their investment subsequent to the introduction of CDS trading. Moreover, after CDS introduction, covenant-violating firms are less likely to default. Our results suggest that in the private debt markets, CDSs discipline borrowers, while the empty creditor problem due to CDS is mitigated because of lenders' reputation concerns and lower coordination frictions. [ABSTRACT FROM AUTHOR]

We investigate the effects of financial risk cycles on business cycles, using a panel spanning 73 countries since 1900. Agents use a Bayesian learning model to form their beliefs about risk. We construct a proxy of these beliefs and show that perceived low risk encourages risk-taking, augmenting growth at the cost of accumulating financial vulnerabilities, and, therefore, a reversal in growth follows. The reversal is particularly pronounced when the low-risk environment persists and credit growth is excessive. Global risk cycles have a stronger effect on growth than local risk cycles via their impact on capital flows, investment, and debt-issuer quality. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

This paper documents an unprecedented decrease in young homeownership since the Great Recession driven by regions with high house prices. Using a panel of U.S. metro areas, I calibrate an equilibrium spatial macro-finance model with overlapping generations of mobile households. The dynamics of regional housing markets is explained by an aggregate credit contraction with heterogeneous local impacts rather than by local shocks. Lower millennial income and wealth amplify its effect. The impact of subsidies to first-time buyers is dampened, because they fail to stimulate regions that suffer from larger busts. Place-based subsidies achieve larger gains. Authors have furnished an Internet Appendix , which is available on the Oxford University Press Web site next to the link to the final published paper online. [ABSTRACT FROM AUTHOR]

Citizen science (CS) is an umbrella term for research with a significant amount of contributions from volunteers. Those volunteers can occupy a hybrid role, being both ‘researcher’ and ‘subject’ at the same time. This has repercussions for questions about responsibility and credit, e.g. pertaining to the issue of authorship. In this paper, we first review some existing guidelines for authorship and their applicability to CS. Second, we assess the claim that the guidelines from the International Committee of Medical Journal Editors (ICMJE), known as ‘the Vancouver guidelines’, may lead to exclusion of deserving citizen scientists as authors. We maintain that the idea of including citizen scientists as authors is supported by at least two arguments: transparency and fairness. Third, we argue that it might be plausible to include groups as authors in CS. Fourth and finally, we offer a heuristic list of seven recommendations to be considered when deciding about whom to include as an author of a CS publication. [ABSTRACT FROM AUTHOR]

The article brings out the major factors that bottom-of-the-pyramid (BoP) retailers consider when adopting brands. It suggests that, besides the known variables of profitability, relationship and merchandise, these retailers attach importance to efforts that lead to reduced perceived risk. These include replacement and buyback facilities besides credit. They define the relationship with distributors/wholesalers not just as firm-firm business-based, but also as stemming from familial, social and ethnic dimensions. Based on 472 responses of acceptance or rejection from BoP retailers from rural India, the findings show a positive, significant relationship with brand characteristics. On the other hand, product-related factors showed a significant but negative relationship. The study found a significant but negative association between distributor relationship and probability of adoption, which should be considered in conjunction with credit, replacement and buyback facilities. The authors suggest that, while brand demand is a significant factor, strategies based on service-dominant logic would be more effective in sustained adoption of brands among small retailers. [ABSTRACT FROM AUTHOR]

Using a proprietary data set on international private equity activity, we study the determinants of buyout investments across 61 countries and 19 industries over the period of 1990 to 2017. We find that countries with cyclically strong economies, more active stock and credit markets, and better rule of law experience more buyout activity. Countries also receive more buyout capital following investor protection and contract enforcement reforms. The set of determinants we identify appear somewhat unique to buyout investments, because other forms of investment such as foreign direct investment, gross capital formation, investments in R&D, and M&A activity do not respond similarly to these factors. [ABSTRACT FROM AUTHOR]

The analysis of data concerning non-bank financial institutions in Romania reveals a consistent increase in loan issuance over the past 11 years, especially in the context of the pandemic. The excessive growth in the number of loans has generated an elevated risk of non-repayment, necessitating careful debtor management. Warning signs, such as decreasing available funds and payment delays, represent critical points for assessing credit risk. National-level analysis underscores the importance of implementing preventive measures to avoid the risk of bankruptcy. Non-bank financial institutions must adopt proactive and adaptable strategies to efficiently manage the loan portfolio and ensure the long-term stability of the financial sector.

This study aims to examine the effect of Current Accounts, Savings, and Time Deposits on Banking Credit of Regional Development Banks (BPD) in Indonesia. The data in this study are in the form of quarterly reports from Regional Development Banks (BPD) in Indonesia. Current Accounts, Savings, and Time Deposits on Banking Credit of Regional Development Banks (BPD) in Indonesia is expected to be evident in 2019–2022. The research method used is the panel regression method. The outcomes show that current accounts, savings and time deposits influences the credit of bank BPD. R Settled 0.994461 current accounts, savings and time deposits factors influence bank credit. The Adjusted R Squared value of 0.994461 indicates that the independent variables can explain the dependent variable 99.44% of the time, while other factors not included in the model have an impact on the remaining 0.5539%. This means that 99.44% of the variable Savings and Time Deposits can predict bank credit, while the remaining 0.5539 percent is impacted by other factors not investigated in this study. This result serves as a warning to BPD banks in each province to be careful in extending credit to customers, because when credit increases, current accounts, savings and time deposits also increase. And if credit decreases, it's the other way around. This means that the higher the credit given to customers, the banking income will also increase with the help of increased current accounts, savings and time deposits. The significance and implications of the results of this research can provide an illustration that although regional banks (BPD) still have an impact on the Indonesian economy even though they only provide samples in the form of savings products.

Financial stability is one of the key conditions for sustainable economic development of the country. The banking system plays an important role in ensuring financial stability and development of economic structures. However, banking activities are associated with certain risks that may negatively affect financial stability and economic development. The analysis of banking risks in the context of financial stability and development of economic structures in Ukraine is an urgent issue for research. The article is devoted to the analysis of banking risks in the context of financial stability and development of economic structures in Ukraine. The importance of the stability of the banking system for the country's economy is noted, and it is emphasized that the analysis of the financial condition and risks is a key element of the management of a banking institution. The article highlights the results of research by domestic scientists on banking risks and considers the classification of risks according to the methodology of the National Bank of Ukraine. The main focus is on credit risk, which is considered in the context of changes in the economy, the use of credit in enterprises and households, global financial markets and modern technologies for its assessment and management. The article aims to emphasize the importance of credit risk analysis in the context of modern challenges and opportunities in the banking sector of Ukraine.

The research aims to determine the impact of government agricultural lending on agricultural and domestic products and to identify the increase in the Agricultural Cooperative Bank's effectiveness in providing agricultural loans. It could be achieved by determining the impact of the government program represented by the agricultural initiative and its role in providing agricultural credit to raise agricultural production and improve agricultural income. The research assumes that government lending after 2003 positively impacted domestic agricultural products and that the agricultural initiative reinforced that effect. The secondary data was relied on from the Agricultural Cooperative Bank and the Ministry of Planning, and the analysis was done by conducting multiple regression (co-integration model) in the time series data of loans according to terms and their impact on the agricultural domestic product. The dependent variable is the agricultural domestic product. The independent variables (Short, medium, and long-term loans and agricultural initiative loans) are represented in the activity of the Agricultural Cooperative Bank, which was introduced as a dummy variable. It is given a value of zero before 2008, and 1 after 2008 until 2016, when the agricultural initiative stopped, and the statistical program (EViews10) was used) in the analysis. The results confirmed the validity of the research hypothesis regarding the existence of a positive effect between the agricultural and domestic products and the impact of the agricultural initiative, and the research recommended the necessity of developing a credit plan that takes into account the farmers' need for loans according to their type.

The university reform known as the BMD (Bachelor-Master-Doctorate) system has turned science into capital with cumulative and transferable credits. This paper is informed by the theoretical perspective of Bakhtin’s dialogism and views this as a pre-built, an earlier word taken up in discourses as self-evident, even though its source is unknown. Where is this pre-built from? This article argues that the capitalist pre-built originates in certain instances of global power. To reveal its path and understand its motivations, the article analyses a group of texts including a pedagogical regulation and the Declarations of Libreville and Bologna.

Algerian public banks need to implement credit risk management techniques tailored to the specific characteristics of SMEs to prevent the deterioration of the banks’ solvency due to the degradation of the quality of their SME portfolios. In this regard, our main objective is to highlight the interest that credit risk management will have within the People’s Credit of Algeria by developing a Credit Scoring model based on the logistic regression technique, using a sample of 226 SMEs. The study results demonstrate the importance of the logistic regression model in classifying companies and its predictive ability for default, with a good classification rate of 91.2%.

AbstractMany early 19th century economic thinkers have provided ideas to explain the causes of commercial crises, as against the Classical belief on the impossibility of a general disequilibrium between demand and supply. J.S. Mill contributed to this debate suggesting an analysis of money and credit as generators of economic fluctuations and crises. Mill apprehended the significance of the function of money as a store of value and explained cyclical fluctuations based on three interrelated causes: the role of money as credit, the propensity of moneylenders to overexpand their credit and the effect of the general tendency of profits to fall. [ABSTRACT FROM AUTHOR]

While credit cards provide transaction services, they have never been included in measures of money supply. We derive the theory to measure the joint services of credit cards and money and propose two measures of their joint services: one based on microeconomic structural aggregation theory, providing an aggregated variable within the macroeconomy; the other a credit‐card‐extended aggregate, optimized as an indicator to capture the contributions of monetary and credit card as nowcasting indicator of nominal GDP. The inclusion of the new aggregates yields substantially more accurate nowcasts of nominal GDP, illustrating the usefulness of the information contained in credit cards. [ABSTRACT FROM AUTHOR]

This paper studies the effectiveness of government‐backed credit guarantees to the infrastructure sector. We propose a two‐sector model with financial intermediary frictions so that infrastructure producers rely on bank loans to finance production. Governments can intervene in the credit market by providing a partial guarantee. We find that a credit guarantee increases infrastructure production, leading to a high fiscal multiplier in the longer run. In the near term, however, higher infrastructure‐sector wages crowd out private‐sector labor supply. Importantly, the higher leverage associated with credit expansion raises nonperforming loans, and this channel is particularly pronounced if the government‐backed credit guarantees linger. [ABSTRACT FROM AUTHOR]

Access to safe and stable housing is important for child and adult well-being. Yet many low-income households face severe challenges in maintaining stable housing. In this article, we examine the impact of the 2021 temporary expansion to the Child Tax Credit (CTC) on housing affordability and the living arrangements of families with low incomes. We employ a parameterized difference-in-differences method and leverage national data from a sample of parents who are receiving or recently received Supplemental Nutrition Assistance Program benefits (N = ∼20,500), many of whom became newly eligible for the CTC. We find that the monthly CTC reduced parents' past-due rent/mortgages (both amounts and incidence) and their reports of potential moves due to difficulties affording rent/mortgages. The CTC increased the likelihood that parents reported a change in their living arrangements and reduced their household size, both effects driven by fewer mothers living with a partner (and not a reduction in doubling up). We find some differences in effects by race and ethnicity and earnings. Our findings illustrate that the monthly credit improved low-income parents' ability to afford housing, gain residential independence from partners, and reduce the number of people residing in their household. [ABSTRACT FROM AUTHOR]